Elixinol Wellness Ltd · ASX:EXL
Elixinol Wellness — FY2023 Earnings Presentation
19 slides from Elixinol Wellness's earnings presentation, Feb 29, 2024
Slide 1: FY23 Results Presentation
FY23 Results Presentation 29 February 2024 * FY23 unaudited Preliminary Financial Report for year ending 31 December 2023; FY22 audited for year ending 31 December 2022. The financial statements for the year ended 31 December 2023 are currently undergoing the statutory audit process and will be fina
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer The following material is for general information purposes only and should not be relied on for the making of any investment decision. Any investment in Elixinol Wellness Limited ACN 621 479 794 (Elixinol Wellness) is subject to a number of investment risks including
Slide 3: Table of Contents
Table of Contents • Vision • Company Overview • Financial Highlights • FY23 Results Summary • Segment Performance • Financial Summary • Cash Flow • Financial Position • Strategy & Outlook 3 3 3 3
Slide 4: Vision
Vision To create healthier everyday lives through the power of plant-based products. Quality & True Natural & Efficacy Heritage Sustainable 4
Slide 5: Elixinol Wellness Overview
Well positioned in global Pioneer and early leader in consumer wellness trend hemp and other plant-based Elixinol Wellness for natural and plant-based food superfoods and developing a robust native ingredients supply model. and nutraceuticals. Overview New product development $13.0m revenue pipeline
Slide 6: Financial Highlights
Financial Highlights Adjusted EBITDA significantly improved for the 8th consecutive half year period. 30% cost base reduction Operational and corporate expense reduction initiatives have continued to significantly reduce operating expenses. $8.6m in FY23 vs $12.2m in FY22 42% reduction in normalised
Slide 7: FY23 Results Summary
FY23 Results Summary 7
Slide 8: Segment Performance
Segment Performance EBITDA and gross margins improving A$’m Australia Americas Rest of World Corporate FY23 FY22 FY23 FY22 FY23 FY22 FY23 FY22 Revenue 5.6 3.7 2.6 3.3 - - - - Gross profit 1.7 1.1 1.7 2.1 - - - - GP% 30% 30% 65% 63% - - - - Operating expenses (2.8) (1.9) (3.5) (6.2) - - (2.3) (4.1) O
Slide 9: Financial Summary
Financial Summary Adjusted EBITDA significantly improved for the 8th consecutive half year period. $m FY23 FY22 Revenue 8.3 7.1 Cost of goods sold (4.9) (3.8) Gross profit 3.4 3.2 GP% 41% 45% Operating expenses (8.6) (12.2) Non-operating income 0.6 0.5 Adjusted EBITDA (4.6) (8.5) Depreciation
Slide 10: Cash Flow
Cash Flow • Optimised operating model has driven significant 42% reduction in normalised net operating cash utilised cost savings excluding variable product costs & inventory purchases. • 42% reduction in normalised net operating cash utilised excluding variable product costs & inventory purchases •
Slide 11: Financial Position
Financial Position Finance facility established to support future growth. A$’m 31 Dec 2023 31 Dec 2022 Current assets Cash and cash equivalents 0.7 2.9 Trade & other receivables 1.7 4.0 Inventories 3.7 1.7 Assets held for sale 1.5 - Other 0.6 0.7 Total current assets 8.2 9.3 Non-current assets Prope
Slide 12: Strategy & Outlook
Strategy & Outlook 12 12
Slide 13: House of Brands
House of Brands We help our customers feel better Positioning: delicious, nutritious and convenient health products that improve & enrich our customers' lives Consumers: have a lifestyle focused on living well and prioritise health & wellness Retail Channels: grocery, independents, health, pharmacy,
Slide 14: B2B Ingredients
B2B Ingredients Business Australian natives and Units superfoods Positioning: plant-based, clean, nutritious, Australian grown (preferred) Customers: B2B (trade) XXXX Food Beverage Beauty Pet Food Manufacturers & Drink Manufacturers & Beauty Animal Food Hospitality Hospitality Manufacturers & Brands
Slide 15: Ananda Food Acquisition
Ananda Food Acquisition On track to complete by late March 2024 Ananda Food Woolworths Coles Retailer Product • BRC registered facility in Newcastle, NSW • Sells bulk seed, protein • Product developed XX and • XXoil to Woolworths, following proactive Owned retail brand • Seed, oil and protein sold u
Slide 16: Revenue Breakdown & Guidance
Revenue Breakdown & Guidance CY2023 Pro-forma Revenue: Cost Synergies: • EXL: $10.7m¹ • $1.0m immediate cost synergies • Ananda Food: $2.1m² • Improved production yields driving gross margin Combined CY2023 Pro-forma Revenue: $12.8m Forecast EBITDA breakeven from mid-CY2024 CY2024 Revenue Guidance:
Slide 17: Growth Strategies
Growth Strategies Key Growth Drivers: 1. Capitalising on the transition of hemp-based consumer products moving from the health channel into mainstream channels, with a particular focus on the high-margin sports Focus on core brands in the nutrition and vitamin sectors. Australian market 2. Significa
Slide 18: Thank you
Thank you for more information, please contact: Ron Dufficy Group CEO & Managing Director Email: ron.dufficy@elixinolwellness.com Mobile: +61 428881718 Website: www.elixinolwellness.com 18
Slide 19: References
References Business Units 1. CMA "Australia's Complimentary Medicines Industry Audit " 2021. 2. Australian Industrial Hemp Alliance (Agrifutures RD&E plan 2022). 3. Global Data Report - "Australia Baking Mixes (Bakery and Cereals) Market Size, Growth and Forecast Analytics, 2021-2026" (published: Se